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Part 2. The B.R.I.C story has "legs" it is being repeated over and over again on CNBC. BRIC stocks have gone parabolic in dollar terms. The US has the worlds worst performing currency of 16 traded and has one the worlds worst performing stock markets. In real terms the US stock market is down almost 20% over a 10 year period. As Warren Buffet and other hedge fund managers travel the world looking for investments, it is important for LONG TERM investors to have an idea, what is outside of the US. Why are so many economies attracting capital as the US dollar continues to fall?

"WAIT! Abitarecatania! OMG! That is not the B.R.I.C. story I was told, I mean sold on CNBC!" you say.

Lets be honest most fools don't know the difference between India or China. Bolivia vs Brazil or Chile vs Mexico. Right? You were just following a herd? Hoping things would work out right? Right?

Lets get smart and get some background on the international market.

The Commanding Heights is a FREE video series you can watch thru the internet from PBS. It provides a complete netcast of the six-hour television program as originally broadcast -- in three two-hour episodes. The episodes are subdivided into chapters, captioned, and enhanced with additional interactive content not available on television.

You know what's real interesting, if you look up the 10 central tenets of Marx's Communist Manifesto, you will find that the USA has incorporated those tenets better than any nation ever has in the history of the world. Look it up!

The US has more central planning then most people know about. Seriously, people are expecting the government to do everything for them, it is very dangerous. I saw a guy on TV that said "The only communist left are in America, there are none here."

Look at this lawyer/journalist turned stock crier, the govenment does not give him enough inflation and look how he does crazy:

Abit...Thanks for the links and your perspective. But like you start with the presumption ignorance .... you should also be fairly open about yours on these countries....PBS is a great source....but you have to take it with a pinch of salt.

Your Top Bear pitch on IFN pretty much summarizes your insight.

The US has a lot of things which are way better but WAY bigger - that's the reason why its difficult to grow. Most of these economies have serious disadvantages - and in this era of global information and proximity - all it takes is a few enterpreneurs to get together - make it better and benefit from it. Bharti Airtel in India is a great example of how to change the game in Telecom. India - probably has one of most advanced wireless networks in the world. Even 20 years back -technological advancement would have had to mean - you had to somehow compress the learning and learn and adapt all the intervening steps. This does not apply to a lot of fields anymore.

AND DOES APPLY to a lot of fields - like basic infrastructure.

I do not know whether the BRIC countries will play well in this environment or not ( I am long BRICs and non-US mostly) - because with all notions of decoupling to the contrary , these markets will follow with major downside volatility with the US. However, if the local ecnomies continue to show signs of strength - then they will come back and very strongly.

Anyway the real themes behind BRICs in a simple nutshell

(1) Brazil: Commodities(2) Russia: Commodities and some consumer.

(3) India: Technology, Consumer

(4) China: Manufacturing, Consumer, Commodities- consumption side.

I think South East Asia still has a real estate cycle to go and India has a looming consumer credit cycle.

I am bearish on everything, really. Especially the BRIC story. I posted China would fall 40% on 30 Dec 07, it has. India bull market I never bought into. I like Eastern Europe and commodities more then foreign stocks.

I will not debate you on that point .....I think the BRICs will fall this round when the US pulls back as the relaization of the extent of the problems with economy emerge - I do not share the extent of the deep noir that you are painting - just shudder if it came true, unfortunately there is a possibility with non-zreo probability.

Commodities: Did you not exit them due to the recent run? I am bullish long-run also - but closed them ( in real life) and just waiting to get in - lost a good one with AUY at $12.